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Gold is likely to face further downside pressure, especially if the dollar continues to firm, Howie Lee, Economist at OCBC Bank, reports. XAU/USD has started the week trading listless around $1860.

Key quotes

“Gold broke below $1900/oz last week and bulls have not shown any inclination to buy on dips despite prices being at a two-month low.”

“With the dollar expected to continue strengthening in the current risk-off environment, the inverse correlation between gold and the dollar may push gold further down in the immediate future.”

“Longer-term,we remain bullish on gold.”